Property and casualty- Missouri

Which of the following is used in the formula for calculating the actual cash value?

Replacement cost

Most insurance companies exclude loss by what?

Mysterious disappearance

Liability imposed on one party by a result of another party is known as?

Vicarious liability

What represents a single dollar amount limit of liability applying to the total of damages for bodily injury and property damage combined in one accident or occurence?

Combined Single

Which liability is commonly applied in product liability and liable for products that are defective, regardless of fault or negligence?

Strict Liability

An insured has a liability policy that sets the amount for all claims that arise from a single incident at 50,000. Which type of limit of liability does this insureds have?

Per Occurence

Payment for medical expenses, loss of wages, funeral expenses, etc are known as what type of compensatory damages?

Special

The part of the insuring agreement that describes covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the?

Insuring agreement

The proof of loss statement must be in what format?

Writing

Representations are oral or written statements made by the applicant that are

considered to be true to the best of their knowledge

because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following EXCEPT

Conditions

what is a material misrepresentation

A statement by the applicant that, upon discovery, would effect the underwriting decision of the insurance company

the policy conditions define

how parties to the contract must act following a loss

When forming an insurance contract, when does acceptance occur?

when an insurers underwritter approves coverage

The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called the

Pro Rata liability

in insurance an offer is made when

the applicant submits an application to the insurer

a sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called

Proof of loss

the pro rata liability clause is designed to protect the principle of

Indemnity

All of the following are conditions commonly found in the insurance policy EXCEPT

A. appraisal

B. insuring agreement'

C. cancellation and nonrenewal

D. subrogation

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answer, B

under the professional liability loss settlemen provision, what must an insurer do before offering to pay a claimant to settle a claim?

Get the insureds consent

what are the main essential parts of a policy?

declarations, insuring clause, conditions, exclusions

When an insurance policy does not offer a continuation or replacement at its expiration date, it is considered a

Nonrenewal

What is it called to have temporary coverage while waiting for the policy?

Binder

What type of info would be found in a policys insuring agreement?

Renewal dates

When would a misrepresentation on the insurance application be considered fruad?

If it is intentional or material

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment

What act protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The fair credit reporting act

An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. this is an example of

Concealment

The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the

Conditions

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following

Consideration

The part of the insurance contract that describes the coverred perils and the nature of the coverage of the contractual agreement between the insurer and the insured is called the

Insuring agreement

For a contract to be enforceable by law, the purpose of the contract must be

Legal and not against public policy

What would modify the original insurance contract by either adding or removing coverage?

Endorsements

A policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principle do not agree on the value of a property loss is known as

Appraisal

A person who is not named as an insured on the declaration page of a policy but is protected by the policy is known as the

Additional insured

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?

Additional coverage

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. What insurance principle has the insurer violated?

Consideration

Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy?

A. Loss or expense caused by the cancellation of a lease is covered

B. It pays for the loss of rent you would have collected less any expenses that would not have continued

C. Coverage continues until repairs are completed

D. The period of time to repair or replace is not limited by the expiration date of the policy

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Answer, A

What coverage in the dwelling policy would provide protection to contents damaged by a fire?

Coverage C

An insureds house is damaged by a fire and is uninhabitable. As a result, the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expense of renting the apartment. Which type of broad or special form coverage does the insured have?

Coverage E- Additional living expense

An apartment occupants personal property would be insured under which homeowners form?

Tenant broad form ( HO-4)

Assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make a payment?

60 days

On a DP-3 dwelling property special form policy, the coverage provided for personal property is

the same as provided on the DP-2 Broad form

What under other coverages is NOT included in the basic form dwelling policy?

Breakage of glass

A unique feature in a bailee form is that it covers

Customers property whether or not the insured has been negligent

According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties

Automatically transfer to a legal rep

What is true in regards to the commercial general liability policys Coverage C- Medical payments?

The coverage is considered good will because payments are made without regard to fault

The employee theft crime policy form includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

Self-insured retention

Coverage A- BI and PD in the commercial general liability policy will cover

Losses due to the insureds negligence

A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly

Completed operations

The party to a surety or fidelity bond who promises to fulfill the obligations of the

Principle

What is NOT included in the definition of an auto under a commercial auto policy?

Mobile equipment

Professional liability coverage protects against legal liability resulting from…

Errors and Omissions

In a participation plan, the insured may be eligible for what?

A partial premium refund

A non admitted insurer who provides insurance coverages that are not available form an admitted insurer is called

Surplus lines insurer

an insurer offers tickets to a sporting event in exchange for someone becoming a client, they are guilty of

Rebating

What is surplus lines insurance

Insurance placed with an unauthorized insurer

a producers license lasts for how many years before it has to be renewed

2 years

Circulating deceptive sales material to the public is what type of unfair trade practice?

False advertising

what is the minimum age requirement for an insurance producer in this state?

18 years old

how many days does a producer have to report to the director any administrative action taken against the producer

30 days

How many hours of continuing education must be completed in ethics and missouri law each licensing period?

# 3 years

A binder was issues on june 1st, and 30 days later, the insurer issued a policy. What happens to the binder coverage?

It will be replaced by the policy coverage

What is the name of a program under the FAIR plan in missouri

Missouri Basic property insurance and placement program

Under the FAIR plan, what is the commission for a producer on a new policy?

12%

What is the max $ amount given as coverage under the FAIR plan if the property is valued at 2.5 million

1 million

How long does the bureau have to file their report on an inspection for a potential client

5 days

When does a binder expire?

60 days

In Missouri, what is the minimum limit for uninsured motorist coverage for bodily injury to 2 or more people

50,000

What are the required minimum limits of liability for an auto policy used by transportation network company drivers who are logged into the TNCs digital network

50/100/25

An insurer sends FORM 26 to the missouri department of motor vehicles for a motor vehicle owner. Which of the following is likely?

The owners drivers license may be suspended

What must every insurance carrier writing workers compensation insurance establish for its insured employers upon request

A comprehensive safety engineering and management program

Proof of insurance is required in all sitatutions except?

any accident causing damage less than 500 dollars

What is the max amount an employer will pay for an employee to be buried

5,000

What is NOT true of uninsured motorist coverage?

it may be offset with workers comp coverage

Individuals who are entitled to purchase auto liability insurance but unable to obtain it in the normal market may apply for what

Missouri automobile insurance plan

How soon from workers compensation going into effect must an insurer notify employees of coverage?

30 days

When a TNC arranges a ride for a customer, what vehicle would be used?

a drivers own vehicle

a transportation network company does what?

Connects riders with drivers that will transport them for a fee

If a driver who has a record of reckless driving, what would be an acceptable proof of financial responsibility

High risk auto insurance.

The common policy condition is a modular part combined with other parts to create the contract. the common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. What provision would be found in the common policy conditions section of the policy?

The first named insured may cancel the policy at any time by giving written notice to the insurer.

what is NOT an essential element of a commercial package policy

valuations and/or settlement provisions

Under the dwelling policy form, what is the maximum time limit during which multiple volcanic activities would be considered part of one occurance?

72 hours

A tornado that destroys property would be an example of what

A peril

When an insured makes truthful statements on the application for insurance, and pays the required premium, it is known as what

Consideration

what will be covered by the contractors equipment floater in an unfiled inland marine insurance?

mobile equipment during transportation to and from the job site

the Gramm-Leach_bliley act was passed to

Protect private customer information filed with a financial institution

what other coverages is NOT included in the basic form dwelling policy

breakage of glass

in a personal auto policy, the medical payments covergae is similar to what

Accident insurance, because it pays medical expenses regardless of fault

an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. What insurance principle has the insurer violated?

Consideration

What best describes the concept of strict liability

It is imposed on defendants engaged in hazardous activites

replacement cost is defined as

Full replacement of property at its current cost, new and WITH OUT reduction for depreciation

In addition to the common policy conditions, what is not covered under liability coverage

Employers liability

events in which a person has both the chance of winning and losing is classified as

Speculative risk

What would be covered under the film coverage form

Soundtracks

what is a hazard?

Any condition or exposure that increases the possibility of loss

what is the deductible of a commercial liability umbrella policy called?

the SIR

What is the special per occurance limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records

5,000

Property insurance that provides 100k coverage for a building and 50k coverage for personal property at a SINGLE location is called

Specific coverage